Merced City Council approves budget, reducing city’s reserves. What does it fund?
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- Merced City Council approved a $440M budget, lowering reserves to fund staffing.
- Cuts affect parks programs while funding adds three employees.
- HUD grants support park upgrades and nonprofits addressing local homelessness.
Merced City Council on Monday approved a nearly $440 million budget that will reduce the city’s reserve fund, in part, to allow a zookeeper to remain on staff.
The change to the reserve fund creates nearly $1.5 million in savings.
It also reduces the reserve amount in the 2025-26 budget from 35% of the operating budget to 30% but the fund remains within the Government Finance Officers Association recommended range, Venus Rodriguez, the city finance director said.
Prior to the reserve reduction, the city faced a $490,000 deficit in the general fund. The city budget does include cuts to Parks and Community Services programming including summer camps and sports clinics.
It however increases the total number of city employees by three to a total of 561. This includes funding three police officer positions frozen last year.
The budget was approved 5-1 with councilmember Fue Xiong being the lone no vote and councilmember Ronnie De Anda absent. Xiong said he opposed allocations for public safety, changes to the affordable housing fund and lack of allocations to the Department of Parks and Community Services.
“We need to reimagine public safety and start allocating funds in areas that address root causes of crimes. And again I’m talking about affordable housing, food security, financial stability and open green shared spaces,” Xiong said.
During its meeting, the council also finalized the maintenance budget for the coming year and allocated funding from the United States Department of Housing and Urban Development grants.
With the $1.5 million HUD grants, the city will upgrade Joe Herb Park and give funds to Harvest Time, Project Sentinel and the Dr. Jennifer Jones Foundation, all organizations addressing homelessness in Merced. Meanwhile, 18 of 39 districts will see reduced landscaping service frequency.